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Cabinet Approves 3% DA, DR Rise to 58% for Central Staff and Pensioners, Effective July 1

Arrears for July–September will be paid with October salaries, providing relief to about 1.17 crore people.

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DA Hike
DA Hike
Dearness allowance is given to help government employees cope up with inflation.

Overview

  • The government estimates an annual fiscal impact of roughly Rs 10,083.96–10,084 crore from the revision.
  • The increase covers about 49.19 lakh central government employees and 68.72 lakh pensioners.
  • This is the second adjustment in 2025 under the CPI-IW linked formula, following a 2% hike effective January that took DA/DR to 55%.
  • It is reported as the final scheduled revision under the 7th Central Pay Commission, with the 8th Pay Commission process pending.
  • At the minimum levels, the change adds about Rs 540 per month for an employee with Rs 18,000 basic pay and Rs 270 for a pensioner with Rs 9,000 pension.